HINDALCO Industries Ltd: Expected Out-performer

The bullishness in the scrip stems from surprise first-quarter profit of Alcoa Inc, the world's third largest producer of ALUMINUM (Al), behind Rio Tinto Alcan and Rusal. The company said its business was better than anyone expected. Alcoa Inc reported a surprise profit for the first quarter. The company sold more aluminum as demand improved from automobile manufacturers, aerospace and commercial transportation. The largest U.S. aluminum maker reported net income of $94 million US, or nine cents a share. Analysts expected a loss of four cents per share. Alcoa reported net income of $308 million, or 27 cents a share, in the year-earlier quarter. Revenue totaled $5.96 billion. Analysts predicted revenue of $5.77 billion. Alcoa Inc said it saw strength in its industrial products, automotive, aerospace, packaging and commercial transportation markets. It raised its global growth forecast for the aerospace market by three percentage points to 13% to 14%. Therefore, Alcoa Inc's bullish outlook is built primarily on strong aerospace and automotive markets. Moreover, it sees aluminum supply deficits all year, Europe notwithstanding, and sees global demand for aluminum growing 7% this year on top of 11% growth in 2011.